Australia's Helia falls as Morningstar flags valuation concerns

Helia

30/10/2025 02:04

Updates

** Shares of Helia Group fall as much as 2.7% to A$5.38, their largest intraday pct drop since October 20

** Morningstar views stock as "overvalued", citing negative operating leverage as demand in the lenders mortgage insurance (LMI) business shrinks

** The LMI provider on Wednesday reported a third-quarter gross written premium of A$66.1 million ($42.95 million)

** Analysts note a 33% rise in co's Q3 gross written premium, driven by higher lending volumes, but flag that results trail historical levels, with demand hurt by the government's expanded 5% deposit scheme and higher interest rates

** Say that although Helia aims to win new clients, analysts don't factor that potential upside in their forecasts

** However, analysts lower uncertainty ratings, considering tightened lending standards by banks, and improved exposure management by co

** Stock up 40.6% YTD, including the day's moves

($1 = 1.5389 Australian dollars)

 (Reporting by Shruti Agarwal and Nikita Maria Jino in Bengaluru)

 ((Shruti.Agarwal@thomsonreuters.com))